Finance Minister of the Republic of Indonesia, Purbaya Yudha Sadewa,\nrevealed that the war in the Middle East has become a severe test for\nthe resilience of emerging market countries.<\/p>\n
He presented this during the \u201cG20 1st Finance Ministers and Central\nBank Governors (FMCBG) Meeting\u201d on the sidelines of the IMF-World Bank\nSpring Meetings from 13-17 April 2026.<\/p>\n
Purbaya explained that for developing countries like Indonesia, the\nprimary concern regarding external imbalances lies in potential risks,\nincluding capital flow volatility, inflationary pressures, and spillover\neffects from the global financial system. In addition to impacts on the\nfinancial sector, one of the burdensome aspects is the rise in energy\nprices due to the war in the Middle East.<\/p>\n
Amid this crisis, Purbaya assured that Indonesia\u2019s state budget\ncontinues to function as a shock absorber to protect public purchasing\npower. The government is committed to maintaining fiscal discipline\nbelow the 3% GDP deficit limit.<\/p>\n
Despite an outflow of foreign exchange amounting to US$1.8 billion\nand rupiah depreciation due to external shocks, Purbaya emphasised that\nIndonesia\u2019s macroeconomic stability remains intact.<\/p>\n
\u201cThis credibility enables Indonesia to absorb higher energy prices\nwithout sacrificing support for vulnerable groups or breaching\nIndonesia\u2019s fiscal deficit limit,\u201d Purbaya stated.<\/p>\n
The ongoing conflict in the Middle East serves as a reminder that\nefficiency in processes and permitting is key to energy resilience.<\/p>\n
In this regard, Indonesia is accelerating reforms by simplifying\npermitting, establishing a de-bottlenecking task force, and reducing\nbarriers to energy imports.<\/p>\n
He is also optimistic about achieving the 2026 growth target of 5.4%\n- 6% amid ongoing global tensions. This optimism stems from Indonesia\u2019s\nsolid economic foundation, such as a strong external position marked by\na trade surplus for 70 consecutive months up to early 2026.<\/p>\n
Furthermore, optimism is evident in Indonesia\u2019s resilient domestic\neconomy, supported by strong household consumption, stable growth,\ncontrolled inflation, managed fiscal deficit, low debt-to-GDP ratio, and\nsustainable downstreaming policies.<\/p>\n
Purbaya added that the government will remain vigilant against\ndynamics in the Middle East and their potential impact on global energy\nprices. The government has prioritised building fiscal buffers to absorb\nprice shocks and ensure that subsidised fuel remains stable to protect\npublic purchasing power.<\/p>\n
\u201cThe government\u2019s policy response involves efficiency in state\nexpenditure and long-term structural transformation by accelerating\ndownstreaming initiatives,\u201d he said.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/before-g20-finance-ministers-purbaya-reveals-indonesias-secret-to-withstanding-global-turbulence-1776747056", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }